Good response to stock issue

Investors have reacted favourably to the latest government stock issue of August 6.

The Treasury received 3,081 applications, valued at over Lm87 million, for the issue of Lm50 million.

The stocks issued were Lm20 million 5.1 per cent MGS 2022, Lm17 million 5.1 per cent MGS 2014 (II) at Lm103.25 and Lm13 million 5.4 per cent MGS 2010 (IV) at Lm104.50.

These three stocks were issued soon after the redemption of Lm25.8 million 6.8 per cent MGS 2004 (II) which matured in July.

While stockholding of the small investor in the maturing stock was of Lm2.7 million, subscription by the small investor to the new stocks exceeded Lm15 million. The government described this as a measure of confidence generated by such instruments, with the general public wanting safe and solid investment opportunities. It was also an indication of liquidity among the public.

The Accountant General said all applications from the general public have been accepted. The residue has been allotted in order of the bid price offered.